As an inventor during these hard economic times, I must raise an issue about innovation and invention. With the new administration crafting a stimulus package to kick-start the economy, maintaining the pipeline of innovation must not be overlooked; innovation and invention is the lifeblood of industry. In order for industry to grow out of the present economic malaise it must have an uninterrupted flow of new products, systems and methods to support future potential.

I propose the Obama administration set aside a fraction of the recovery money for distribution to small entity inventors, as well as small business start-ups. The President Elect projects the stimulus effort will create three million jobs from a seven hundred and seventy-five billion dollar stimulus package; this breaks down to $250,000 per job created. Spending the same amount of money in support of innovation would produce a multiplier effect resulting in a threefold job creation.

An investment of a mere five billion dollars from the stimulus package (about .6%), at $250,000 per venture, will provide the opportunity for 20,000 new enterprises to get a foot up. These funds will have an immediate effect on economic activity; the money will be immediately spent on payroll, business services, materials and equipment acquisition. There will be direct employment provided by many of these ventures and others will contribute to the workforce by their purchases with various business venders, in some cases even expanding the vendor’s job footprint.

Any method implemented to distribute the grants should be speedy and egalitarian; a process unencumbered by the straightjacket of regulation. The lottery system is a non-political means of distributing the funds, which can be simple and effective. The only requirement should be the candidate have a patent, or, for start-ups, provide a simple business plan. As in all risky enterprises there will be some losers and some winners, the diversification inherent in the lottery approach will provide some balance.

A free market approach could be adapted using the Internet to bring the American public into the selection process. A site could be constructed were the public could evaluate and rate the inventions to determine their marketability. With the American people involved in the selection process there would be a sense of participation in the recovery process.